Strategic Mngt Competencies
Globalization and Strategy
Strategic Management Competencies
for
Global Business
Clarence J Mann, JD, Dr. jur.
University of Maryland
University College
Exchange Faculty Program
Universitas Terbuka – University of Maryland University College
UPBJJ Pangkal Pinang 10 October 2009
Globalization and Strategy
Strategic
Management Competencies
for
Global Business
Dr. Clarence J. Mann
University of Maryland University
Graduate School of Management & Technology
Global Forces/MegaTrends
• Time of Transition – 2005-2035
• Industries: 1/3 Local – 1/3 Regional – 1/3 Global
• Democratization of Tech, Finance & Info - Herds
Roaming the Fenceless Plains of the World
• Demographics - Graying of Advanced Societies
• Industry Consolidation as National Buffers fall
-- Globalization -Economic Convergence & Tension
Cultural
Social
Process
Economic
Political
Management Squeeze Play
Between the Forces and Counter Forces of Globalization
Institutional Infrastructure
(Political, legal, commercial)
Squeeze Play
Physical
Infrastructure
(Public &
Private)
Global
Info, Tech &
Finance Forces
Global
Cultural
Patterns
Human
Infrastructure
(Skills &
Competencies)
Figure 1. Management Squeeze Play Among Forces of Globalization
Forces
Opportunities
Expanding Trade
Counter Forces
Diverse Regulatory Regimes
Foreign Direct Investment
Free Capital Movement
Technology Convergence
Stick
Figure
of
Information/IT Revolution
Weak Economic Infrastructure
Manager
Varying Workforce Productivity
Distinctive Cultural Patterns
Intensifying Competition
Alienation and Distrust
Growing Consciousness
Challenges
Facing Enterprise
Managers
Motivations to Globalize
• Resource Seekers
• Market Seekers
• Strategic Asset Seekers
• Business Climate Seekers
• Efficiency Seekers
Management Squeeze Play
Challenge to the Strategist
• What has changed over past two decades?
–
–
–
–
No. of Variables at Play
Rapidity of Change
Volatility of Environment
Interdependence – firms, geography
• Therefore, strategy needs to –
– Interface with environment at every point
– Possess multi-levels, be multi-functional
– Reflect an ever evolving future
Contrasting Themes
• Emergent vs. Deliberate Strategy
• Market vs. Resource-Based Positioning
• Portfolio vs. Core Competence
• Competition vs. Cooperation
• Industry Evolution vs. Industry Creation
Globalization & Strategy
DIMENSIONS
OF
STRATEGY
Strategic Typologies
Three Interactive Dimensions
• Technological Dimension
• Organizational Dimension
• Transactional Dimension
Dimensions of Strategy in a Global Context
Strategic Dimensions/Trade-Offs
• Technological Dimension
Productivity vs. Innovation
• Organizational Dimension
Asset Dispersion vs. Coordination
• Transactional Dimension
Internal- vs. Externalization
Three Dimensions of Strategy
(I)
Technological
Dimension
Productive Performance
Productivity vs. Innovation
Technology Trade-Offs: Mass Manufacturing vs. Customization
Each Technology Option Entails: a Different Technology Mix
and a Different Organizational Structure
New Choices
Customized
Small
Batch
Flexible
Manufacturing
Mass
Customization
Relatively
Highly
Skilled
Product Variety
E.g., HandCrafted
Furniture
Standardized
E.g., pre-fabricated housing
Relatively
Unskilled
Small
Production Volume
Unlimited
Adapted from R. Daft (2001, 7th ed.) OrganizationTheory and Design
Highly
Mechanized
Technological Dimension
Source: Porter (1996). What is Strategy?, p. 62
Source: Adapted from Williamson (1999), Strategy as
Options on the Future, p. 120
Three Dimensions of Strategy
(II)
Organizational
Dimension
Access
Asset Dispersion vs. Coordination
Organizational Dimension
(M. Porter (1986), Competition in Global Industries)
C
o
o Hi
r
d
i
n Low
a
ti
o
n
Simple Global
Strategy
“Transnational”
Operations
Country-Centered
MNCs
(polycentric)
Dispersed
Export-Oriented w/
decentralized mktg
(ethnocentric)
(Geographical)
Assets
Concentrated
Organizational Dimension
Generic Roles of National Organizations
Strategic
Importance
High
Black Hole
Low
Implementer
Strategic Leader
of
Local
Environment
Low
Contributor
High
Level of Local Resources and Capabilities
C. Bartlett & S. Ghoshal (2002), Managing Across Borders: The Transnational Solution. Harvard Business School. 122
Multi-Level Strategies
• Corporate Level – integrative
• Divisional Level – core products
• Business Level – product lines
• Functional Level – business functions
Multi-Level
Management Roles
Position
Corporate
Manager
Global
Visionary
Talent Scout &
Allocator
Role Framer
& Legitimizer
Country
Manager
Sensor
Interpreter
Builder
Local Assets
Strategic
Contributor
Functional
Manager
Specialized
Repository
Cross-Pollinator
Champion
Resource Use
Business
Manager
Strategist
Architect
Market Positioning Asset Positioning
Standards
Coordinator
Cross Border Ops
Adapted from C. Bartlett & S. Ghoshal (2002), Managing Across Borders. HBS, Chap. 11.
Three Dimensions of Strategy
(III)
Transactional
Dimension
Focus
Internal vs. Externalization
Alliance Scope
• Strategic Scope– range of products/services
• Economic Scope – costs/benefits of each
partner
• Operational Scope – depth and extent
of interface
Transactional Dimension
M.Y. Yohina & U.S. Rangan (1995), Strategic Alliances. Boston: Harvard Business School.
Typology of Alliances
High
Potential
Pre-Competitive
Competitive
Alliances
Alliances
Pro-Competitive
Non-Competitive
Alliances
Alliances
Conflict
Low
Low
High
Extent of Organizational Interaction
N.V. Philips
Netherlands
Globalization & Strategy
Changing Nature of Firms
• Firms w/i industries (M. Porter)
• Firms co-evolving industries (J. Moore)
• Transnational typology (C. Bartlett & S. Ghoshal)
– Global, MNC, International, Transnational
• Global network enterprises (M.Yoshina & U. Rangan)
– Flagship firms (A. Rugman & J. D’Cruz)
– Gated and Un-Gated Networks
Strategic Competencies
for
Global Managers
Three Interdependent Dimensions of Strategy
1. Primary
Purposes
Served
2. Dominant
Conditions
Addressed
3. Value
Trade-Offs
Technological
Organizational
Transactional
Dimension
Dimension
Dimension
Sustained
Providing
Access
Quality
Performance
Diversity
Unremitting
&
innovation Pluriformity
Focusing
Operations
Intensifying
Competition
Asset
Internalization
Productivity
Dispersion
verses
verses
verses
Innovation Coordination Externalization
Strategic Management Competencies
Strategic
Dimensions
Technological
Organizational
Transactional
Global
Strategic
Perspective
Aptitude
for
Risk
Effective
Comm’n
& Coord’n
InterCultural
Skills
Open
Systems
Thinking
Emerging
Opportunities
Technology
Global
Visioning
Diversity
Of
Talent
Continuous
Learning
Societal
Differences
Location
Leveraging
Trust
Building
Corporate
Cultures
Holistic
Analysis
Value
Chain
Network
Risk
Sharing
Network
Standards
Relationship
Building
Collaborative
Leadership
Deployment
Building Foundational Competencies
Ethical leadership
Implementation
Systems thinking …….. decision making …… Team management
Global ………………..
Perspective …………. Inter-cultural
Critical thinking …….. personal skills ……… Communication
Technology fluency
Information literacy/research skills
Questions?
Comments
Strategic Management Competencies
for
Global Business
Clarence J Mann, JD, Dr. jur.
University of Maryland
University College
Exchange Faculty Program
Universitas Terbuka – University of Maryland University College
UPBJJ Pangkal Pinang 10 October 2009
Globalization and Strategy
Strategic
Management Competencies
for
Global Business
Dr. Clarence J. Mann
University of Maryland University
Graduate School of Management & Technology
Global Forces/MegaTrends
• Time of Transition – 2005-2035
• Industries: 1/3 Local – 1/3 Regional – 1/3 Global
• Democratization of Tech, Finance & Info - Herds
Roaming the Fenceless Plains of the World
• Demographics - Graying of Advanced Societies
• Industry Consolidation as National Buffers fall
-- Globalization -Economic Convergence & Tension
Cultural
Social
Process
Economic
Political
Management Squeeze Play
Between the Forces and Counter Forces of Globalization
Institutional Infrastructure
(Political, legal, commercial)
Squeeze Play
Physical
Infrastructure
(Public &
Private)
Global
Info, Tech &
Finance Forces
Global
Cultural
Patterns
Human
Infrastructure
(Skills &
Competencies)
Figure 1. Management Squeeze Play Among Forces of Globalization
Forces
Opportunities
Expanding Trade
Counter Forces
Diverse Regulatory Regimes
Foreign Direct Investment
Free Capital Movement
Technology Convergence
Stick
Figure
of
Information/IT Revolution
Weak Economic Infrastructure
Manager
Varying Workforce Productivity
Distinctive Cultural Patterns
Intensifying Competition
Alienation and Distrust
Growing Consciousness
Challenges
Facing Enterprise
Managers
Motivations to Globalize
• Resource Seekers
• Market Seekers
• Strategic Asset Seekers
• Business Climate Seekers
• Efficiency Seekers
Management Squeeze Play
Challenge to the Strategist
• What has changed over past two decades?
–
–
–
–
No. of Variables at Play
Rapidity of Change
Volatility of Environment
Interdependence – firms, geography
• Therefore, strategy needs to –
– Interface with environment at every point
– Possess multi-levels, be multi-functional
– Reflect an ever evolving future
Contrasting Themes
• Emergent vs. Deliberate Strategy
• Market vs. Resource-Based Positioning
• Portfolio vs. Core Competence
• Competition vs. Cooperation
• Industry Evolution vs. Industry Creation
Globalization & Strategy
DIMENSIONS
OF
STRATEGY
Strategic Typologies
Three Interactive Dimensions
• Technological Dimension
• Organizational Dimension
• Transactional Dimension
Dimensions of Strategy in a Global Context
Strategic Dimensions/Trade-Offs
• Technological Dimension
Productivity vs. Innovation
• Organizational Dimension
Asset Dispersion vs. Coordination
• Transactional Dimension
Internal- vs. Externalization
Three Dimensions of Strategy
(I)
Technological
Dimension
Productive Performance
Productivity vs. Innovation
Technology Trade-Offs: Mass Manufacturing vs. Customization
Each Technology Option Entails: a Different Technology Mix
and a Different Organizational Structure
New Choices
Customized
Small
Batch
Flexible
Manufacturing
Mass
Customization
Relatively
Highly
Skilled
Product Variety
E.g., HandCrafted
Furniture
Standardized
E.g., pre-fabricated housing
Relatively
Unskilled
Small
Production Volume
Unlimited
Adapted from R. Daft (2001, 7th ed.) OrganizationTheory and Design
Highly
Mechanized
Technological Dimension
Source: Porter (1996). What is Strategy?, p. 62
Source: Adapted from Williamson (1999), Strategy as
Options on the Future, p. 120
Three Dimensions of Strategy
(II)
Organizational
Dimension
Access
Asset Dispersion vs. Coordination
Organizational Dimension
(M. Porter (1986), Competition in Global Industries)
C
o
o Hi
r
d
i
n Low
a
ti
o
n
Simple Global
Strategy
“Transnational”
Operations
Country-Centered
MNCs
(polycentric)
Dispersed
Export-Oriented w/
decentralized mktg
(ethnocentric)
(Geographical)
Assets
Concentrated
Organizational Dimension
Generic Roles of National Organizations
Strategic
Importance
High
Black Hole
Low
Implementer
Strategic Leader
of
Local
Environment
Low
Contributor
High
Level of Local Resources and Capabilities
C. Bartlett & S. Ghoshal (2002), Managing Across Borders: The Transnational Solution. Harvard Business School. 122
Multi-Level Strategies
• Corporate Level – integrative
• Divisional Level – core products
• Business Level – product lines
• Functional Level – business functions
Multi-Level
Management Roles
Position
Corporate
Manager
Global
Visionary
Talent Scout &
Allocator
Role Framer
& Legitimizer
Country
Manager
Sensor
Interpreter
Builder
Local Assets
Strategic
Contributor
Functional
Manager
Specialized
Repository
Cross-Pollinator
Champion
Resource Use
Business
Manager
Strategist
Architect
Market Positioning Asset Positioning
Standards
Coordinator
Cross Border Ops
Adapted from C. Bartlett & S. Ghoshal (2002), Managing Across Borders. HBS, Chap. 11.
Three Dimensions of Strategy
(III)
Transactional
Dimension
Focus
Internal vs. Externalization
Alliance Scope
• Strategic Scope– range of products/services
• Economic Scope – costs/benefits of each
partner
• Operational Scope – depth and extent
of interface
Transactional Dimension
M.Y. Yohina & U.S. Rangan (1995), Strategic Alliances. Boston: Harvard Business School.
Typology of Alliances
High
Potential
Pre-Competitive
Competitive
Alliances
Alliances
Pro-Competitive
Non-Competitive
Alliances
Alliances
Conflict
Low
Low
High
Extent of Organizational Interaction
N.V. Philips
Netherlands
Globalization & Strategy
Changing Nature of Firms
• Firms w/i industries (M. Porter)
• Firms co-evolving industries (J. Moore)
• Transnational typology (C. Bartlett & S. Ghoshal)
– Global, MNC, International, Transnational
• Global network enterprises (M.Yoshina & U. Rangan)
– Flagship firms (A. Rugman & J. D’Cruz)
– Gated and Un-Gated Networks
Strategic Competencies
for
Global Managers
Three Interdependent Dimensions of Strategy
1. Primary
Purposes
Served
2. Dominant
Conditions
Addressed
3. Value
Trade-Offs
Technological
Organizational
Transactional
Dimension
Dimension
Dimension
Sustained
Providing
Access
Quality
Performance
Diversity
Unremitting
&
innovation Pluriformity
Focusing
Operations
Intensifying
Competition
Asset
Internalization
Productivity
Dispersion
verses
verses
verses
Innovation Coordination Externalization
Strategic Management Competencies
Strategic
Dimensions
Technological
Organizational
Transactional
Global
Strategic
Perspective
Aptitude
for
Risk
Effective
Comm’n
& Coord’n
InterCultural
Skills
Open
Systems
Thinking
Emerging
Opportunities
Technology
Global
Visioning
Diversity
Of
Talent
Continuous
Learning
Societal
Differences
Location
Leveraging
Trust
Building
Corporate
Cultures
Holistic
Analysis
Value
Chain
Network
Risk
Sharing
Network
Standards
Relationship
Building
Collaborative
Leadership
Deployment
Building Foundational Competencies
Ethical leadership
Implementation
Systems thinking …….. decision making …… Team management
Global ………………..
Perspective …………. Inter-cultural
Critical thinking …….. personal skills ……… Communication
Technology fluency
Information literacy/research skills
Questions?
Comments